The DXY trades around $99.17 on the 4H time frame after rallying from $98.44. Large green engulfing candles reclaimed the red 50-period MA that resides near $98.80, and the price rejected the white descending trendline that has been in place since April’s highs while holding the blue support line near $98.00. Higher lows are formed inside the short-term trading base. The recent bullish continuation moved above the $99.00 pivot point.
The RSI is now above 52, indicating momentum has returned without becoming overbought. The Fib retracement from May’s pivot projects the $99.33 to $99.66 area as the next cluster of resistance. The volume profile indicates that $98.80 serves as a floor, where buying is absorbed. The price structure is neutral to bullish above the $98.80 level, as the market tests the ceiling of the white descending channel.
Trade Idea: Buy $99.16 targeting $99.66, stop loss at $98.80.
